UK Government’s Net Borrowing In April At GBP 20.2 Billion

UK government’s net borrowing in April increased to GBP 20.2 billion. In the corresponding month of the previous year, this borrowing had been at GBP 19.2 billion. The borrowing in April 2025 was higher than expectations.

Source: Office of National Statistics, UK Government

More Borrowing In Spite Of Increase In Taxes

Increased borrowing happened in spite of the many tax increases that the incumbent Labor government has imposed since it came to power. The government raised unemployment tax in its most recent budget. Now the UK government is considering raising wealth taxes further.

Increased Welfare Payments

Increased borrowing in the month was also due to increased welfare payments by the government. These include increases in pensions, government transfer payments, and increase in costs of public services.

In 2024-25 total borrowing of UK government stood at GBP 137.3 billion, according to Office for National Statistics of government of UK. Rise in borrowing by government tends to crowd out private investment. This in turn results in increase in cost of borrowing for private entities.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: Office of National Statistics, UK Government